FS Credit Real Estate Income Trust Inc. – Investor Investigation

Are you concerned about your investment in FS Credit Real Estate Income Trust Inc.?

If you have suffered losses in FS Investments offerings, the securities attorneys at The White Law Group may be able to help you.

Decline in Net Asset Value (NAV)

FS Credit Real Estate Income Trust, a monthly NAV REIT sponsored by FS Investments, invests primarily in floating-rate senior loans secured by commercial real estate.

The trust has reported declines in net asset value in past years, including in March 2020 when unrealized depreciation in its commercial mortgage-backed securities portfolio led to a reduction in NAV. The company attributed that drop to the impact of COVID-19 on financial markets.

As of July 2025, FS Credit REIT reported an NAV of $24.03 per share and total assets of approximately $2.95 billion, but liquidity pressures remain a key concern for investors.

Liquidity and Redemption Challenges

Like other non-traded REITs, FS Credit REIT is not publicly traded, and investors rely on limited share repurchase programs. Redemptions are capped at 2% of NAV per month and 5% per quarter, though in recent quarters the trust has occasionally fulfilled requests above those limits, signaling investor demand for liquidity.

March 2025 Form 8-K Updates

According to a March 11, 2025 SEC filing, FS Credit Real Estate Income Trust disclosed two important developments:

• Amended Class I RSU Agreements: The REIT updated its Class I Restricted Stock Unit (RSU) program with FS Real Estate Advisor, LLC and Rialto Capital Management. Future RSU grants will vest over four years beginning after the second anniversary of the grant date. Previously issued awards will vest proportionally between 2026 and 2029.
• CFO Transition: Edward T. Gallivan, Jr. resigned as Chief Financial Officer, effective April 1, 2025. He was replaced by Brian Gold, a former BrightSpire Capital and Goldman Sachs finance executive. Gold will serve as CFO and enter into an indemnification agreement consistent with other FS REIT officers.

Risks of Investing in FS Credit Real Estate Income Trust

• Illiquidity: Redemption programs can be limited or suspended.
• Valuation Concerns: NAV is based on internal assessments, not public market pricing.
• Market Sensitivity: Commercial real estate downturns can quickly erode portfolio values.
• High Fees: Advisory and distribution costs reduce returns.

Broker Due Diligence Failures

FINRA rules require brokers to perform due diligence before recommending complex products like FS Credit REIT. Advisors must ensure suitability based on a client’s age, net worth, financial situation, and risk tolerance.

When brokers fail in this duty, investors may have grounds to pursue claims through arbitration.

Recovery Options – FINRA Arbitration

If you have suffered losses in FS Credit REIT, you may be eligible to file a claim against your brokerage firm. While class actions often provide limited relief, FINRA arbitration may offer a faster and more direct path to recovery.

Free Consultation with a Securities Attorney

If you are concerned about your investment in FS Credit Real Estate Income Trust, contact The White Law Group at (888) 637-5510 or visit our website for a free consultation.

The White Law Group is a national securities fraud, arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.